Global O&G Pipeline Sector ‘to Benefit from Growing Energy Demand’

The global oil and gas pipeline sector will continue to benefit from growing demand for energy, particularly natural gas, as well as the ongoing mismatch between producing and consuming regions globally.

That is the view of oil and gas analysts at Fitch Solutions Macro Research, who made the statement in a recent report.

In the report, the analysts outlined that there is currently US$172 billion in oil and gas infrastructure project value moving through the construction cycle globally. The majority of this project value, US$86 billion, is concentrated in the construction phase, according to the analysts, who noted that there is US$60 billion in the planning phase.

The analysts also stated in the report that “though overall pipeline project value is concentrated in emerging markets … the top two markets by project value are the United States and Canada, with US$45.4 billion and US$26.2 billion, respectively”.

“In light of fast-changing production dynamics in the US unleashed by shale oil and the attendant pipeline infrastructure bottlenecks in both Canada and the United States, we expect demand for additional pipeline investment to remain strong in the coming years, solidifying their respective positions at the top of our database,” the analysts said.

According to Fitch Solutions Macro Research’s database, the largest projects moving through the construction cycle are the US$21 billion Power of Siberia pipeline in Russia, the US$11.7 billion Trans Anatolian Natural Gas Pipeline (TANAP) Project in Turkey, and the Atlantic Coast Pipeline moving from West Virginia to North Carolina in the United States.

Source: Rigzone